Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present summaries of the Corporation’s assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets:



	June 30, 2015
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	33,980	$	—	$	33,980
Available for sale investment securities:
Equity securities	33,041		—		—		33,041
U.S. Government sponsored agency securities	—		48,260		—		48,260
State and municipal securities	—		236,517		—		236,517
Corporate debt securities	—		92,822		4,350		97,172
Collateralized mortgage obligations	—		918,232		—		918,232
Mortgage-backed securities	—		1,008,664		—		1,008,664
Auction rate securities	—		—		98,606		98,606
Total available for sale investments	33,041		2,304,495		102,956		2,440,492
Other assets	18,002		22,524		—		40,526
Total assets	$	51,043	$	2,360,999	$	102,956	$	2,514,998
Other liabilities	$	17,848	$	19,622	$	—	$	37,470



	December 31, 2014
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	17,522	$	—	$	17,522
Available for sale investment securities:
Equity securities	47,623		—		—		47,623
U.S. Government securities	—		200		—		200
U.S. Government sponsored agency securities	—		214		—		214
State and municipal securities	—		245,215		—		245,215
Corporate debt securities	—		90,126		7,908		98,034
Collateralized mortgage obligations	—		902,313		—		902,313
Mortgage-backed securities	—		928,831		—		928,831
Auction rate securities	—		—		100,941		100,941
Total available for sale investments	47,623		2,166,899		108,849		2,323,371
Other assets	17,682		21,305		—		38,987
Total assets	$	65,305	$	2,205,726	$	108,849	$	2,379,880
Other liabilities	$	17,737	$	21,084	$	—	$	38,821

Schedule of Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis using Level 3 Inputs

The following table presents the changes in the Corporation’s available for sale investment securities measured at fair value on a recurring basis using unobservable inputs (Level 3):



	Three months ended June 30, 2015
	Pooled Trust Preferred Securities			Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance at March 31, 2015	$	1,084		$	3,820		$	98,932
Sales	(554		)	—			—
Unrealized adjustment to fair value (1)	—			(2		)	(420		)
Discount accretion (2)	—			2			94
Balance at June 30, 2015	$	530		$	3,820		$	98,606

	Three months ended June 30, 2014
Balance at March 31, 2014	$	5,659		$	3,820		$	147,713
Sales	(1,394		)	—			—
Unrealized adjustment to fair value (1)	38			(2		)	124
Settlements - calls	(28		)	—			(1,081		)
Discount accretion (2)	—			2			175
Balance at June 30, 2014	$	4,275		$	3,820		$	146,931

	Six months ended June 30, 2015
	Pooled Trust Preferred Securities			Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance at December 31, 2014	$	4,088		$	3,820		$	100,941
Sales	(3,633		)	—			—
Unrealized adjustment to fair value (2)	190			(4		)	(88		)
Settlements - calls	(117		)	—			(2,446		)
Discount accretion (3)	2			4			199
Balance at June 30, 2015	$	530		$	3,820		$	98,606

	Six months ended June 30, 2014
Balance at December 31, 2013	$	5,306		$	3,781		$	159,274
Sales	(1,394		)	—			(11,912		)
Unrealized adjustment to fair value (2)	559			36			248
Settlements - calls	(200		)	—			(1,081		)
Discount accretion (3)	4			3			402
Balance at June 30, 2014	$	4,275		$	3,820		$	146,931


(1)	Pooled trust preferred securities, single-issuer trust preferred securities and ARCs are classified as available for sale investment securities; as such, the unrealized adjustment to fair value was recorded as an unrealized holding gain (loss) and included as a component of available for sale investment securities on the consolidated balance sheets.


(2)	Included as a component of net interest income on the consolidated statements of income.

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis

The following table presents the Corporation’s financial assets measured at fair value on a nonrecurring basis and reported on the Corporation’s consolidated balance sheets:



	June 30, 2015
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	145,058	$	145,058
Other financial assets	—		—		54,361		54,361
Total assets	$	—	$	—	$	199,419	$	199,419



	December 31, 2014
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	127,834	$	127,834
Other financial assets	—		—		54,170		54,170
Total assets	$	—	$	—	$	182,004	$	182,004

Details of Book Value and Fair Value of Financial Instruments

As required by FASB ASC Section 825-10-50, the following table details the book values and estimated fair values of the Corporation’s financial instruments as of June 30, 2015 and December 31, 2014. In addition, a general description of the methods and assumptions used to estimate such fair values is also provided.



	June 30, 2015				December 31, 2014
	Book Value		Estimated Fair Value		Book Value		Estimated Fair Value
	(in thousands)
FINANCIAL ASSETS
Cash and due from banks	$	100,455	$	100,455	$	105,702	$	105,702
Interest-bearing deposits with other banks	322,218		322,218		358,130		358,130
Federal Reserve Bank and Federal Home Loan Bank stock	65,106		65,106		64,953		64,953
Loans held for sale (1)	33,980		33,980		17,522		17,522
Available for sale investment securities (1)	2,440,492		2,440,492		2,323,371		2,323,371
Loans, net of unearned income (1)	13,244,230		13,129,521		13,111,716		13,030,543
Accrued interest receivable	41,193		41,193		41,818		41,818
Other financial assets (1)	157,792		157,792		169,764		169,764
FINANCIAL LIABILITIES
Demand and savings deposits	$	10,501,956	$	10,501,956	$	10,296,055	$	10,296,055
Time deposits	3,003,753		2,999,352		3,071,451		3,069,883
Short-term borrowings	409,035		409,035		329,719		329,719
Accrued interest payable	15,172		15,172		18,045		18,045
Other financial liabilities (1)	175,220		175,220		172,786		172,786
Federal Home Loan Bank advances and long-term debt	1,132,641		1,152,810		1,139,413		1,142,980


(1)	These financial instruments, or certain financial instruments within these categories, are measured at fair value on the Corporation’s consolidated balance sheets. Descriptions of the fair value determinations for these financial instruments are disclosed above.